Using a transaction card account to make recurring loan payments

ABSTRACT

Recurring loan payments (e.g., mortgage payments) through a transaction card account is disclosed. Information is received at a transaction account system from a loan company system corresponding to an application received at the loan company system from a requester for a loan involving automatic debits to a transaction card account. A determination is made as to whether the requestor is eligible for the loan to be associated with a transaction card account. If not, the customer receives a communication of rejection. If eligible, a determination is made whether the transaction account system has stored therein a transaction card account of the requester. If no, a transaction card account is opened for the requestor and associated with the loan. If yes, the loan payment is associated with the transaction card account bill.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation of, and claims priority to, U.S. Ser.No. 11/642,956 filed Dec. 21, 2006 and entitled “USING A TRANSACTIONCARD ACCOUNT TO MAKE RECURRING LOAN PAYMENTS.” The '956 applicationclaims priority under 35 U.S.C. §119(c) to U.S. Provisional ApplicationNo. 60/753,398, filed Dec. 27, 2005. Both of which are incorporated byreference herein in their entirety.

BACKGROUND

1. Field of the Invention

The present invention generally relates to using a transaction cardaccount to make recurring loan payments.

2. Related Art

Many loan companies (e.g., mortgage lenders) currently do not offerconsumers the ability to make recurring loan payments (e.g., monthlymortgage payments) using a transaction card account. As a result,consumers are left with conventional payment vehicles, e.g., checks andelectronic checks through Automated Clearing House (ACE), which may notbe flexible, convenient and/or secure. For example, many consumers feelchecks are inconvenient and often lead to late payments. With ACH, manyconsumers feel that providing checking account info and having moneyautomatically deducted from checking accounts is not safe or reliable.

Given the foregoing, what is needed is a system, method and computerprogram product for using a transaction card account to make recurringloan payments.

BRIEF DESCRIPTION

The present invention meets the above-identified needs by providing asystem, method and computer program product for using a transaction cardaccount to make recurring loan payments.

In one embodiment, there is provided a method for using a transactioncard account to make recurring loan payments comprising: receivinginformation at a transaction account system from a loan company systemcorresponding to an application received at the loan company system froma requester for a loan that has also requested having automatic debitsto a transaction card account; determining if the requestor is eligiblefor the loan, which recurring payment is to be associated with atransaction card account corresponding recurring bill; determining, ifeligible, whether the transaction account system has stored therein atransaction card account of the requestor, (is) if no, opening atransaction card account for the requestor and associating thetransaction card account with the loan, and (ii) if yes, associating theloan with the transaction card account; and periodically debiting thetransaction card account corresponding to a recurring loan paymentamount for the loan.

In another embodiment, there is provided a system for using atransaction card account to make recurring loan payments comprising acontroller, a storage device, and a comparing device. The controllerreceives information from a loan company system corresponding to anapplication received at the loan company system from a requester for aloan that has also requested having automatic debits to a transactioncard account when a loan is approved by the loan company system. Thestorage device is coupled to the controller and stores informationregarding individual transaction card accounts. The comparing devicecompares information received from the controller with the storedinformation to determine if the requestor is associated with one of theindividual transaction card accounts and generates a result signal. Thecontroller is configured to associate the loan with one of theindividual transaction card accounts or to associate the loan with a newindividual transaction card account based on the result signal. Thecontroller is configured to perform the automatic debits to theassociated transaction card account according to information receivedfrom the loan company system in a recurring amount value based on theloan.

In a further embodiment, the present invention provides a computerprogram product comprising a computer useable medium having computerprogram logic recorded thereon for controlling at least one processor.The computer program logic comprising computer program code modules thatperform operations similar to the above-mentioned method and systemembodiments.

Further features and advantages of the present invention as well as thestructure and operation of various embodiments of the present inventionare described in detail below with reference to the accompanyingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The features and advantages of the present invention will become moreapparent from the detailed description set forth below when taken inconjunction with the drawings. The left-most digit of a reference numberidentifies the drawing in which the reference number first appears.

FIG. 1 is a system diagram, according to one embodiment of the presentinvention.

FIGS. 2, 3, 4, and 5 are flowcharts illustrating various processes,according to various embodiments of the present invention.

FIG. 6 is a block diagram of a sample computer system that can be usedin the implementation of one or more embodiments of the presentinvention.

FIGS. 7 and 8 are flowcharts illustrating various processes, accordingto various embodiments of the present invention.

DETAILED DESCRIPTION

Overview and Terminology

The present invention is directed to a system, method and computerprogram product for using a transaction card account to make recurringloan payments.

The present invention is now described in more detail herein in terms ofthe above exemplary description. This is for convenience only and is notintended to limit the application of the present invention. In fact,after reading the following description, it will be apparent to oneskilled in the relevant art(s) how to implement the following inventionin alternative embodiments.

The terms “member,” “cardmember,” “user,” “end user”, “consumer”,“customer,” “participant,” etc., and/or the plural form of these termsare used interchangeably throughout herein to refer to those persons orentities capable of accessing, using, be affected by and/or benefitingfrom the tool that the present invention provides for searching creditreports using only a partial social security number and otheridentifying information.

Furthermore, the terms “business” or “merchant” may be usedinterchangeably with each other and shall mean any person, entity,distributor system, software and/or hardware that is a provider, brokerand/or any other entity in the distribution chain of goods or services.For example, a merchant may be a grocery store, a retail store, a travelagency, a service provider, an on-line merchant or the like.

Transaction Accounts and Instrument

A “transaction account” as used herein refers to an account associatedwith an open account or a closed account system (as described below).The transaction account may exist in a physical or non-physicalembodiment. For example, a transaction account may be distributed innon-physical embodiments such as an account number, frequent-flyeraccount, and telephone calling account or the like. Furthermore, aphysical embodiment of a transaction account may be distributed as afinancial instrument.

A financial transaction instrument may be traditional plastictransaction cards, titanium-containing, or other metal-containing,transaction cards, clear and/or translucent transaction cards, foldableor otherwise unconventionally-sized transaction cards, radio-frequencyenabled transaction cards, or other types of transaction cards, such ascredit, charge, debit, pre-paid or stored-value cards, or any other likefinancial transaction instrument. A financial transaction instrument mayalso have electronic functionality provided by a network of electroniccircuitry that is printed or otherwise incorporated onto or within thetransaction instrument (and typically referred to as a “smart card”), orbe a fob having a transponder and an RFID reader.

Open Versus Closed Cards

“Open cards” are financial transaction cards that are generally acceptedat different merchants. Examples of open cards include the AmericanExpress®, Visa®, MasterCard® and Discover® cards, which may be used atmany different retailers and other businesses. In contrast, “closedcards” are financial transaction cards that may be restricted to use ina particular store, a particular chain of stores or a collection ofaffiliated stores. One example of a closed card is a pre-paid gift cardthat may only be purchased at, and only be accepted at, a clothingretailer, such as The Gap® store.

Use of Transaction Accounts

With regard to use of a transaction account, users may communicate withmerchants in person (e.g., at the box office), telephonically, orelectronically (e.g., from a user computer via the Internet). During theinteraction, the merchant may offer goods and/or services to the user.The merchant may also offer the user the option of paying for the goodsand/or services using any number of available transaction accounts.Furthermore, the transaction accounts may be used by the merchant as aform of identification of the user. The merchant may have a computingunit implemented in the form of a computer-server, although otherimplementations are possible.

In general, transaction accounts may be used for transactions betweenthe user and merchant through any suitable communication means, such as,for example, a telephone network, intranet, the global, public Internet,a point of interaction device (e.g., a point of sale (POS) device,personal digital assistant (PDA), mobile telephone, kiosk, etc.), onlinecommunications, off-line communications, wireless communications, and/orthe like.

System Overview

FIG. 1 shows a system 100, according to one embodiment of the presentinvention. System 100 comprises a loan system 102, a transaction cardaccount system 104, and a credit agency system(s) 106. In one example,loan, transaction card account, and credit agency systems 102, 104, and106 are coupled together and communicate with each other via a network108. In other examples, loan, transaction card account, and creditagency systems 102, 104, and 106 are directly connected through a wiredor wireless system for communications.

In one example, loan system 102 can be a mortgage system, or the like,that includes many different types of mortgage products. In one example,loan system 102 can include an application information storage 110 thatreceives and stores information or data signal 111 (e.g., financial,personal, demographic, etc. information) from a requestor of a loan.This information signal 111 may also include information relating towhat type of loan product the requestor is applying for, and whether therequestor wants to pay the loan product through a new or old transactioncard account, which is described in more detail below.

In this example, loan system 102 also includes a controller 112 and acredit device 114. In various examples, controller 112 can be aprocessor, a microprocessor, a digital signal processor, or the like. Inone example, controller 112 processes the loan application information111. In various examples, the loan application can be automaticallyprocessed by the controller 112 to generate a decision or theinformation 111 can be processed by the controller 112 to place it in aform to later be manually reviewed by an application officer. In eitherexample, processing of the loan application information 111 may includecontroller 112 initiating communication between credit device 114 andcredit agency system 106 to retrieve credit information 116 from creditagency system 106. It is to be appreciated that one or more creditagency systems 106 can be used to retrieve credit information 116, aswould be known to a skilled artisan. In one example, credit information116 is processed by controller 112 in conjunction with applicationinformation 111 to determine whether a loan product should be approved,for example using any process known to a skilled artisan.

In one example, transaction card account system 104 can include acontroller 118, a transaction card account storage 120, a comparingdevice 122, and an optional credit device 124. In various examples,controller 118 can be a processor, a microprocessor, a digital signalprocessor, or the like.

In one example, when a requestor of the loan product also requests thatthe loan be paid through debits to a transaction card account,controller 118 receives a signal 126 from loan system 102. In variousexamples, signal 126 can include loan product information, the creditdetermination information, the requestor's information, and/or otherinformation. Controller 118 processes information signal 126 andgenerates a signal 128 that is transmitted to comparing device 122.Comparing device 122 compares the information in signal 128 toinformation in storage 120 to determine if the requestor already has atransaction card account established in the transaction card accountsystem 104. If an account is already established for the requestor, theloan product is associated with this account for the future periodicrecurring loan payments that gill be debited to the transaction cardaccount. If an account is not already established for the requestor,controller 118 processes a portion of the received information 126 andtransmits information signal 130 to storage 120 to establish atransaction card account for the requestor. Transaction card accountsystem 104 then generates and forwards a new transaction card to therequestor.

In one example, credit device 124 is optional, because transaction cardaccount system 104 can base its decision on whether or not to allowassociation of the loan with a transaction card account on the creditdetermination information portion of signal 126 from loan system 102. Inother examples, when credit device 124 is used, transaction card accountsystem 104 can make its own eligibility determination. In this latterexample when credit device 124 is used, controller 118 initiatescommunication between credit device 124 and credit agency 106, possiblyvia network 108, to retrieve credit information 116 corresponding to therequestor. Then, controller 118 forwards the retrieved creditinformation 116 to credit device 124 to determine if the requestor iseligible for associating a transaction card with the loan. Onceapproved, then controller 118 generates and transmits signal 130 tostorage 120, which establishes a transaction card account for therequestor in storage 120.

In one example, once it is either established that a transaction cardaccount already exists for the requestor or a new transaction cardaccount is associated with the requestor, transaction card accountsystem 104 communicates with loan system 102. This communication is toverify that the customer has accepted and enrolled in a program thatwould allow the automatic periodic payments of the recurring loanaccount value through debits to their transaction card account. Onceestablished, the automatic debits can begin. These debits areautomatically posted to the transaction card account similar to anyother transaction associated with the transaction card account.

In one example, a customer receives a corresponding number of award orloyalty points, or the like, for each dollar of the recurring loanaccount value.

In one example, loan and transaction card account systems 102 and 104can be computer systems having underlying software or they can besoftware on a computer system. Thus, loan and transaction card accountsystems 102 and 104 can therefore be hardware, software, firmware, or acombination thereof. Thus, the use of “device” throughout thisdescription can be a hardware device or a software module that performsa described function.

In various examples, network 108 can be a wired or wireless network thatallows for transmission of information between loan, transactionaccount, and credit agency systems 102, 104, and 106. For example,network 108 can be a wide area network (WAN), local area network (LAN),Ethernet, Internet, Intranet, Extranet, etc.

In one example, system 100 can performed a process that can be referredto as Mortgage Payment on the Card (“MPOC”) for a specially-createdmortgage product (or line of products), created just for the purpose ofmaking monthly mortgage payments on the card (i.e., a transaction cardaccount). Loan system 102 (e.g., mortgage lender partners of thetransaction card account company system 104) would offer consumers thisline of products that would have certain loan characteristics and addedfeatures, including a transaction card account (e.g., an AmericanExpress card account) that is used for each monthly mortgage payment.Alternatively, system 100 can perform a process referred to as MortgagePayment on the Card (“MPOC”) for a specially-created program in whichmortgage lenders offer consumers the option of making monthly mortgagepayments on the card (i.e., trans card account) for a subset of theirexisting mortgages. Loan system 102 would offer customers this line ofmortgages that has the unique feature or allowing a transaction cardaccount (e.g., an American Express card account) for making monthlymortgage payments. In one example, by using a transaction card account,consumers would be able to obtain the rewards/loyalty points associatedwith their transaction card for each monthly mortgage payment.

As discussed above, in order to be eligible for this service, consumersneed to have a card on the transaction card account network and theyhave to enroll in automatic recurring billing. If non-cardmembers applyfor the product, they will be issued, as discussed above, a newtransaction card, e.g., a Preferred Rewards Gold Card from AmericanExpress Company of New York, N.Y., to make their monthly mortgagepayments.

In one example, incremental closing costs or fees will be retained bythe mortgage lender system 102. These fees may be charged in one lumpsum at closing or they may be charged on an annual basis over the lifeof the mortgage. Alternatively, the fees may be charged half initiallyand half over the life of the loan. Additionally, or alternatively, feesmay be charged on a monthly basis over the life of the mortgage.

In one example, a special process may be implemented in the case of“spend disruption” (e.g., failure to pay a required amount on thetransaction card account during a billing cycle) in which: 1) loansystem 102 is notified by transactions card account system 104 when thecustomer does not properly pay their transaction card account, such thatloan system 102 can obtain an alternative form of payment.

In one example, the transaction card account company may providemonetary incentives to the loan company for acquiring new customers andallowing them to put the recurring loan payment to be made on thetransaction card account. In various examples, remuneration may be madeto mortgage lender partners in the form of a bounty for new cardacquisitions. In various examples, the transaction card account companymay have different settlement options fix different mortgage lenderpartners.

In one example, the mortgage line of products will consist of a varietyof common mortgage types. The interest rates and closing costs will becompetitive with the best available rates. The approval process for theloan will be quick and easy. Monthly payments will be chargedautomatically to a transaction card (e.g., an American Express credit orcharge card).

As discussed above, through use of the above system 100, customers canearn loyalty or rewards points associated with their transaction cardfor each monthly mortgage payment. For example, if their monthlymortgage payment is $2,000, they can earn 2,000 points per month or24,000 points per year. Their monthly mortgage payment will beautomatically made through their transaction card, allowing them to:save time preparing payments and balancing their bank statement,eliminate the chance of late payment, and/or consolidate bill paymentsand keep track of mortgage payments online. In addition to thesebenefits, consumers who close a loan through the program will alsoreceive an exclusive assortment of home-related offers. No additionalinterest will be charged on the transaction card provided their card ispaid in full by the payment due date.

Process Overview

FIGS. 2, 3, 4, 5, 6, and 7 are flowcharts illustrating variousprocesses, according to various embodiments of the present invention. Inone example, these processes can be performed using system 100.

FIG. 2 shows a flowchart depicting a method 235. For example, method 235can be a method for using a transaction card account to make recurringloan payments. In step 236, information is received at a transactionaccount system from a loan company system corresponding to anapplication received at the loan company system from a requester for aloan involving automatic debits to a transaction card account. In step238, a determination is made as to whether the requestor is eligible forthe loan to be associated with a transaction card account. If noteligible in step 238, in step 241 the customer receives a communicationof rejection. If eligible in step 238, in step 240 a determination ismade whether the transaction account system has stored therein atransaction card account of the requestor. If no in step 240, in step242 a transaction card account is opened for the requestor andassociated with the loan. If yes in step 240, in step 244 the loanpayment is associated with the transaction card account bill, asdiscussed elsewhere. In step 246, periodic debits to the transactioncard account are automatically made that correspond to a recurring loanpayment amount for the loan.

In various examples, step 238 is either performed based on informationfrom the loan company system, based on information generated by thetransaction card account company, or based on information from both theloan company system and the transaction card company system.

In one example, method 235 periodically stores a respective reward valueor a loyalty point value associated with the recurring loan paymentamount in the transaction card account.

In one example, the recurring loan payment is a mortgage payment.

In an alternative embodiment, method 235 may only comprise associating amortgage product with the transaction card account and automaticallyperiodically debiting the transaction card account with the mortgagepayment amount, e.g., steps 240, 242, 244, and 246.

FIG. 3 shows a flowchart depicting a method 300. In one example, method300 is a method for using a transaction card account to make recurringloan payments, e.g., mortgage payments. In this embodiment, the customeris known to be a transaction card holder of a transaction card companyassociated with or partnering with a mortgage company accepting amortgage application. In step 302, a consumer contacts a lender orselling agent of the mortgage company and applies for a mortgage. Instep 304, the lender takes loan information (e.g., financial, personal,demographic, etc. information of the customer). In one example, riskapproval criteria can be the same for the lender and a transaction cardcompany. In step 306, after an automated or manual evaluation of theloan application, the lender approves the customer for a mortgageproduct. In step 308, the transaction card company is contacted and setsa mortgage payment as an automatic bill pay process.

FIG. 4 shows a flowchart depicting a method 400. In one example, method400 is a method for using a transaction card account to make recurringloan payments, e.g., mortgage payments. In this embodiment, the customeris known to not be a transaction card holder of a transaction cardcompany associated with or partnered with a mortgage company accepting amortgage application. In step 402, a consumer contacts a lender orselling agent of the mortgage company and applies for a mortgage. Instep 404, the lender takes loan information, similar to above. In oneexample, risk approval criteria can be the same for the lender and atransaction card company. In step 406, after an automated or manualevaluation of the loan application, the lender approves the customer fora mortgage product and forwards the customer's information to thetransaction card company. In step 408, upon closing of the mortgage, thetransaction card company establishes a new transaction card account forthe customer. In step 410, the transaction card account company sets amortgage payment as an automatic bill pay process.

FIG. 5 shows a flowchart depicting a method 500. For example, method 500can be used to make sure the transaction card account bills are beingpaid and to alert the mortgage company if they are not. In step 502,each mortgage charge to the transaction card account is authorized bythe mortgage company. In step 504, the transaction card company declinesthe mortgage charge and asks the customer to pay down the transactioncard account before more charges can be posted to it. This can be forseveral reasons, for example the customer is in default or at/over theircredit limit on their transaction card account. In an optional step 506,transaction card company can alert the loan system company that thecharge was not accepted and that the mortgage company should contact thecustomer directly to pay the mortgage payment.

FIG. 7 shows a flowchart depicting a method 700. In one example, method300 is a method for using a transaction card account to make recurringloan payments, e.g., mortgage payments. In this embodiment, the customeris known to be a transaction card holder of a transaction card companyassociated with or partnering with a mortgage company accepting amortgage application. In step 702, a consumer contacts a lender orselling agent and applies for mortgage that is part of the program andgives the consumer the ability to make their monthly mortgage paymentson their transaction card account (e.g., American Express). In step 704,a lender takes information for a loan. In step 706, the lenderpre-approves customer for loan. In step 708, the lender contacts thetransaction card company (e.g., American Express), either directly viavoice authorization or via electronic authorization, to determine if theconsumer would be authorized to make the mortgage payment at that pointin time. There is no guarantee that the consumer will be able totransact in the future, but the pre-approval should be a good indicator.If the consumer is approved for the loan and is authorized to make thepayment, the consumer will receive pre-approval for the Program. In step710, upon closing of the loan, the lender sets up a mortgage payment(e.g., via a recurring billing solution) as a recurring transaction onthe transaction card account.

FIG. 8 shows a flowchart depicting a method 800. In one example, method800 is a method for using a transaction card account to make recurringloan payments, e.g., mortgage payments. In this embodiment, the customeris known to not be a transaction card holder of a transaction cardcompany associated with or partnered with a mortgage company accepting amortgage application. In step 802, a consumer contacts a lender orselling agent and applies for a mortgage and a transaction card account(e.g., an American Express Preferred Rewards Gold Card). In step 804,the lender takes information for the loan and the transaction cardaccount. In step 806, the lender forwards information to transactioncard account company (e.g., American Express) for approval for thetransaction card account. Once confirmation of approval is received fromthe transaction card account company. In step 808 the lender approvesthe consumer for the loan and the transaction card. In step 810, uponclosing of the loan, the lender sets up a mortgage payment (e.g., via arecurring billing solution) as a recurring transaction on thetransaction card account.

In one example, for pre-authorization (e.g., step 708 above), normaldecision factors (e.g., credit and fraud parameters) many be made morestringent, so that it is harder for existing cardmembers to getauthorized to make the monthly mortgage payment. This will help decreasethe chances that cardmembers who close a loan through the Program willbe declined for their first payment, and possibly also for the ongoingpayments associated with the loan.

For new cardmembers, some card issuing companies have limits on spend(e.g., amount one can charge) for the first few months of having thecard. Some mortgage payments can exceed this amount, which wouldnormally prevent the potential cardmember applicant from making paymentsfor the loan since the recurring monthly payments could not beimmediately charged on the card. However, in one example, these rulesare relaxed to allow the new cardmember to incur charges substantialenough to cover, for example, a mortgage payment.

Additionally, or alternatively, if a decision is made that a new orexisting cardmember cannot qualify to make a mortgage payment, i.e.,risk systems decline a cardmember for a payment, the card issuingcompany can work with the potential new cardmember or the existingcardmember to remedy the problems associated with the declined payment.For example, if a cardmember is considered higher risk due to certainspending patterns or if they are spending a lot and intend on spendingmore, this may cause the cardmember to be declined for payment. If thisoccurs, the card issuing company would contact the cardmember andcommunication with the cardmember that if they can agree to pre-pay andthe transaction card company will proactively reach out to the lender tonotify the lender that the cardmember should now be approved for paymentif the lender submits the charge against the cardmembers transactionaccount again. In another example, the cardmember may not be consideredhigh risk, but has spent a lot that month and/or over the course ofrecent months, if the cardmember communicates that they will not spendanymore that month, the card issuing company will proactively reach outto the lender to notify the lender that the cardmember should now beapproved for payment if the lender submits the charge against thecardmembers transaction account again.

Example Implementations

The present invention (i.e., system 100 and processes 235, 350, 460, and575 in FIGS. 2, 3, 4, and 5, or any part(s) or function(s) thereof) maybe implemented using hardware, software or a combination thereof and maybe implemented in one or more computer systems or other processingsystems. However, the manipulations performed by the present inventionwere often referred to in terms, such as receiving or comparing, whichare commonly associated with mental operations performed by a humanoperator. No such capability of a human operator is necessary, ordesirable in most cases, in any of the operations described herein whichform part of the present invention. Rather, the operations are machineoperations. Useful machines for performing the operation of the presentinvention include general purpose digital computers or similar devices.

In fact, in one embodiment, the invention is directed toward one or morecomputer systems capable of carrying out the functionality describedherein. An example of a computer system 600 is shown in FIG. 6.

The computer system 600 includes one or more processors, such asprocessor 604. The processor 604 is connected to a communicationinfrastructure 606 (e.g., a communications bus, cross-over bar, ornetwork). Various software embodiments are described in terms of thisexemplary computer system. After reading this description, it willbecome apparent to a person skilled in the relevant art(s) how toimplement the invention using other computer systems and/orarchitectures.

Computer system 600 can include a display interface 602 that forwardsgraphics, text, and other data from the communication infrastructure 606or from a frame buffer not shown) for display on the display unit 630.

Computer system 600 also includes a main memory 608, preferably randomaccess memory (RAM), and may also include a secondary memory 610. Thesecondary memory 610 may include, for example, a hard disk drive 612and/or a removable storage drive 614, representing a floppy disk drive,a magnetic tape drive, an optical disk drive, etc. The removable storagedrive 614 reads from and/or writes to a removable storage unit 618 in awell known manner. Removable storage unit 618 represents a floppy disk,magnetic tape, optical disk, etc. which is read by and written to byremovable storage drive 614. As will be appreciated, the removablestorage unit 618 includes a computer usable storage medium having storedtherein computer software and/or data.

In alternative embodiments, secondary memory 610 may include othersimilar devices for allowing computer programs or other instructions tobe loaded into computer system 600. Such devices may include, forexample, a removable storage unit 622 and an interface 620. Examples ofsuch may include a program cartridge and cartridge interface (such asthat found in video game devices), a removable memory chip (such as anerasable programmable read only memory (EPROM), or programmable readonly memory (PROM)) and associated socket, and other removable storageunits 622 and interfaces 620, which allow software and data to betransferred from the removable storage unit 622 to computer system 600.

Computer system 600 may also include a communications interface 624.Communications interface 624 allows software and data to be transferredbetween computer system 600 and external devices. Examples ofcommunications interface 624 may include a modem, a network interface(such as an Ethernet card), a communications port, a Personal ComputerMemory Card International Association (PCMCIA) slot and card, etc.Software and data transferred via communications interface 624 are inthe form of signals 628 which may be electronic, electromagnetic,optical or other signals capable of being received by communicationsinterface 624. These signals 628 are provided to communicationsinterface 624 via a communications path (e.g., channel) 626. Thischannel 626 carries signals 628 and may be implemented using wire orcable, fiber optics, a telephone line, a cellular link, an radiofrequency (RE) link and other communications channels.

In this document, the terms “computer program medium” and “computerusable medium” are used to generally refer to media such as removablestorage drive 614, a hard disk installed in hard disk drive 612, andsignals 628. These computer program products provide software tocomputer system 600. The invention is directed to such computer programproducts.

Computer programs (also referred to as computer control logic) arestored in main memory 608 and/or secondary memory 610. Computer programsmay also be received via communications interface 624. Such computerprograms, when executed, enable the computer system 600 to perform thefeatures of the present invention, as discussed herein. In particular,the computer programs, when executed, enable the processor 604 toperform the features of the present invention. Accordingly, suchcomputer programs represent controllers of the computer system 600.

In an embodiment where the invention is implemented using software, thesoftware may be stored in a computer program product and loaded intocomputer system 600 using removable storage drive 614, hard drive 612 orcommunications interface 624. The control logic (software), whenexecuted by the processor 604, causes the processor 604 to perform thefunctions of the invention as described herein.

In another embodiment, the invention is implemented primarily inhardware using, for example, hardware components such as applicationspecific integrated circuits (ASICs). Implementation of the hardwarestate machine so as to perform the functions described herein will beapparent to persons skilled in the relevant art(s). In yet anotherembodiment, the invention is implemented using a combination of bothhardware and software.

Conclusion

While various embodiments of the present invention have been describedabove, it should be understood that they have been presented by way ofexample, and not limitation. It will be apparent to persons skilled inthe relevant art(s) that various changes in form and detail can be madetherein without departing from the spirit and scope of the presentinvention). Thus, the present invention should not be limited by any ofthe above described exemplary embodiments, but should be defined only inaccordance with the following claims and their equivalents.

In addition, it should be understood that the figures, which highlightthe functionality and advantages of the present invention, are presentedfor example purposes only. The architecture of the present invention issufficiently flexible and configurable, such that it may be utilized inways other than that shown in the accompanying figures.

Further, the purpose of the following Abstract is to enable the U.S.Patent and Trademark Office and the public generally, and especially thescientists, engineers and practitioners in the art who are not familiarwith patent or legal terms or phraseology, to determine quickly from acursory inspection the nature and essence of the technical disclosure ofthe application. The Abstract is not intended to be limiting as to thescope of the present invention in any way.

What is claimed:
 1. A method comprising: processing, by a computer-basedtransaction account system comprising a processor and a non-transitory,tangible memory, a request to make recurring an automatic, periodiccharge to a transaction account of a requestor for a loan based on apreviously submitted application from the requestor to a loan company;notifying, by the computer-based transaction account system, the loancompany responsive to a decline of the automatic, periodic charge;receiving, by the computer-based system, prepayment informationindicating that the requestor has prepaid at least a partial amount ofthe automatic, periodic charge; and notifying, by the computer-basedsystem, the loan company responsive to the prepayment informationrelating to the automatic, periodic charge.
 2. The method of claim 1,further comprising periodically storing at least one of a reward valueor a loyalty point value associated with the automatic, periodic chargein the transaction account.
 3. The method of claim 1, wherein theautomatic, periodic charge is associated with a mortgage payment.
 4. Themethod of claim 1, wherein the transaction account is a credit basedaccount.
 5. The method of claim 1, wherein the loan is associated withthe transaction account of the requestor.
 6. The method of claim 1,further comprising determining that the requestor is eligible to use thetransaction account for the automatic, periodic charges.
 7. The methodof claim 1, further comprising offering incentives to the loan companyto transmit the information of the requestor to the transaction accountsystem.
 8. The method of claim 1, wherein the loan comprises a subset ofavailable loans.
 9. The method of claim 1, further comprising performinga pre-authorized process of the transaction account.
 10. The method ofclaim 1, further comprising performing a pre-authorized process of thetransaction account, in response to the transaction account of therequestor being stored in the transaction account system.
 11. The methodof claim 1, further comprising requiring, by the computer-based system,that a payment be made to reduce a balance of the transaction account.12. The method of claim 1, further comprising receiving notificationinformation, by the computer-based system, indicating that the requestorwill reduce the requestor's rate of spend on the transaction account.13. The method of claim 1, further comprising notifying, by thecomputer-based system, the loan company responsive to an indication of areduced rate of spend relating to the automatic, periodic charge.
 14. Anarticle of manufacture including a non-transitory, tangible computerreadable medium having instructions stored thereon that, in response toexecution by a computer-based transaction account system, cause thecomputer-based system to perform operations comprising: processing, bythe computer-based system, a request to make recurring an automatic,periodic charge to a transaction account of a requestor for a loan basedon a previously submitted application from the requestor to a loancompany; notifying, by the computer-based system, the loan companyresponsive to a decline of the automatic, periodic charge, wherein theautomatic, periodic charge is a request to automatically charge arecurring loan payment amount to a transaction account of a requestorfor a loan; receiving, by the computer-based system, prepaymentinformation indicating that the requestor has prepaid at least a partialamount of the automatic, periodic charge; and notifying, by thecomputer-based system, the loan company responsive to the prepaymentinformation relating to the automatic, periodic charge.
 15. A systemcomprising: a processor configured for managing a transaction account, atangible, non-transitory memory configured to communicate with theprocessor, the tangible, non-transitory memory having instructionsstored thereon that, in response to execution by the processor, causethe processor to perform operations comprising: processing, by theprocessor, a request to make recurring an automatic, periodic charge toa transaction account of a requestor for a loan based on a previouslysubmitted application from the requestor to a loan company; notifying,by the processor, the loan company responsive to a decline of theautomatic, periodic charge, wherein the automatic, periodic charge is arequest to automatically charge a recurring loan payment amount to atransaction account of a requestor for a loan; receiving, by theprocessor, prepayment information indicating that the requestor hasprepaid at least a partial amount of the automatic, periodic charge; andnotifying, by the processor, the loan company responsive to theprepayment information relating to the automatic, periodic charge.